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2023 (2) TMI 337 - ITAT RAJKOTReopening of assessment u/s 147 - income escaped amount to be reopened for reassessment - information received from DDIT, Investigation Unit-2, Rajkot that the assessee has paid an amount for Life Insurance Policy assigned to the assessee, which the assessee has not declared in her Return of Income - HELD THAT:- Assessee explained that the premium amount for Life Insurance Policy was not Rs. 9,99,000/- but only Rs. 99,900/-, which is a mistake and produced a notarized declaration by the Sales Manager of Bajaj Alliance Life Insurance Company quoting that the premium amount wrongly as Rs. 9,99,000/- instead of Rs. 99,900/- which was a typing mistake. Life Insurance Premium is not Rs. 9,99,000/- but it is Rs. 99,900/- only. As per Section 149(1)(b) of the Act, which prescribes the income escaped amount is Rupees one lakh or more is to be reopened for reassessment. Thus, we find that the initiation of reassessment proceedings itself is against the provisions of 149(1)(b) of the Act and invalid in law. Therefore the same is liable to be quashed. Thus the grounds raised by the Assessee is hereby allowed. Penalty levied u/s. 272A(1)(c) - HELD THAT:- Assessee’s taxable income being less than the taxable limit prescribed under the Act, we have no hesitation in deleting the penalty levied u/s. 272A(1)(c) of the Act. Thus the grounds raised by the Assessee is hereby allowed.
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